Zipmex Proposes Repayment Plan for Creditors
The troubled cryptocurrency exchange, Zipmex, has put forward a proposal to repay its creditors 3.35 cents per dollar for their initial claims as part of its restructuring efforts. This figure could potentially increase to 29.35 cents per dollar depending on recoveries made from the exchange’s amended restructuring plan. The aim is to settle a debt of over $97 million.
Creditors Seek Independent Review
However, major creditors of Zipmex are not in favor of the proposed repayment plan and have requested an independent review of the exchange’s assets and liabilities. They plan to vote on the current restructuring plan by early December.
Temporary Suspension and Previous Troubles
Just a few days ago, Zipmex temporarily suspended all crypto trading and deposits in Thailand to comply with regulatory requirements. The exchange has faced difficulties since July 2022 when it froze withdrawals due to its involvement in the Terra ecosystem’s collapse. Additionally, it suffered a $53 million exposure to the failures of crypto lenders Babel Finance and Celsius Network.
Deal with V Ventures Falls Through
In December 2022, Zipmex entered into an agreement with V Ventures for the acquisition of 90% of the company. However, V Ventures failed to complete the fourth tranche payment, leading to a new proposal to pay creditors only 10% to 20% of their claims.
Hot Take: Zipmex Faces Uphill Battle in Restructuring Efforts
Zipmex’s proposed repayment plan for creditors is met with resistance as major creditors call for an independent review. The troubled exchange has faced challenges since freezing withdrawals following the collapse of the Terra ecosystem and exposure to crypto lender failures. Additionally, its deal with V Ventures fell through, leading to a reduced payment proposal for creditors. The outcome of the vote on the restructuring plan in early December will determine the future of Zipmex’s debt settlement efforts.
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